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HomeMy WebLinkAboutRESOLUTION 2024-075 N.C.S. 06/17/2024 DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD Resolution No. 2024-075 N.C.S. of the City of Petaluma, California RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA REPEALING RESOLUTION NO. 2017-182 N.C.S. AND ADOPTING UPDATED ADMINISTRATIVE REGULATIONS TO IMPLEMENT CHAPTER 6.10 OF THE PETALUMA MUNICIPAL CODE ENTITLED CANNABIS WHEREAS, in November 2016, California voters approved the Control, Regulate and Tax Adult Use of Marijuana Act, referred to in ballot materials as the Adult Use of Marijuana Act ("AUMA"), which established a regulatory scheme for nonmedical marijuana similar to that established for medical marijuana under the MMRSA; and WHEREAS, following its adoption by California voters, the AUMA was codified in various provisions of state law, including in Article 2 entitled"Cannabis"in the Uniform Controlled Substances Act within the California Health and Safety Code, and in Division 10 entitled the "Medicinal and Adult-Use Cannabis Regulation and Safety Act"of the California Business and Professions Code; and WHEREAS, as codified in the California Health and Safety Code and the California Business and Professions Code, the AUMA decriminalized for purposes of state law specified nonmedical cannabis uses pursuant to California Health and Safety Code section 11362.1, including: possession,processing, transporting, purchasing, obtaining and given away to persons 21 years old older, without compensation, not more than 28.5 grams of non-concentrated cannabis or not more than 8 grams of concentrated cannabis, including cannabis contained in cannabis products; possessing,planting, cultivating, harvesting, drying or processing not more than six living cannabis plants and possessing the cannabis produced by the plants; smoking or ingesting cannabis or cannabis products; and possessing, transporting, purchasing, obtaining, using, manufacturing, or giving away to persons 21 years of age or older without compensation cannabis accessories; and WHEREAS, effective January 1, 2018, California's laws regulating cannabis were substantially revised by comprehensive legislation known as the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) which established a uniform licensing regime for both medical and adult-use cannabis; and WHEREAS, in response to enactment of the AUMA and MAUCRSA, the City Council introduced on November 13, 2017, and subsequently adopted on December 4, 2017, Ordinance No. 2634 N.C.S. repealing and replacing former Chapter 10.15 of the Petaluma Municipal Code entitled"Medical Marijuana"with a new chapter 10.15 entitled"Cannabis" extending the City's cannabis regulations to non- medical cannabis uses in the City; and WHEREAS, as specified in section 10.15.010, the purpose of Chapter 15 is to recognize and respect the will of the California voters in approving the AUMA through adoption of less restrictive local cannabis regulations, while at the same time promoting the public health, safety and welfare of the Petaluma community by protecting citizens from the secondary impacts associated with cannabis dispensaries and commercial activity and cannabis delivery, preventing increased demand for police response, and maintaining access of qualified patients and primary caregivers to medical cannabis and medical cannabis products; and Resolution No. 2024-075 N.C.S. Page 1 DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD WHEREAS, the City's commercial cannabis regulations impose requirements for retail and wholesale cannabis businesses, including issuance by the City of an annual commercial cannabis permit, and requirements intended to protect the health, safety and welfare of the public and to avoid significant impacts from cannabis commercial activity by: limiting the location and number of permitted commercial cannabis establishments; establishing cannabis business employee age requirements and background check requirements, requiring compliance with the City's cannabis business application process, and requiring compliance with the City's cannabis commercial regulations and with applicable state cannabis laws and regulations; and WHEREAS, adoption of updated retail cannabis regulations, including permitting storefront cannabis retail sales, is identified as one of the City Council's top priorities; and WHEREAS, the City Council held a workshop on March 11, 2024 to, discuss the timing and scope of cannabis regulation amendments, and at the workshop, the Council supported staff s recommendation on the number and location of storefront cannabis retail uses, and directed staff to move forward with the amendments utilizing a hybrid approach, with limited amendments occurring in the near term, and comprehensive amendments to follow; and WHEREAS, on April 15, 2024, staff updated the City Council on the estimated milestones and timelines for each City Council goal, and the Council provided direction on an updated goals and priorities workplan, including updates to the City's commercial cannabis regulations; and WHEREAS, direction provided at the April 15, 2024, City Council meeting reiterated prior Council direction to prepare limited amendments to the City's cannabis regulations,both in the City's Municipal Code and the City's Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S. ("IZO"), to allow storefront retail cannabis sales at up to 3 locations in areas zoned Business Park and Industrial, where retail and wholesale commercial cannabis activities are permitted under the City's existing cannabis regulations; and WHEREAS, on May 14, 2024, the Planning Commission held a duly noticed public hearing to receive and consider a staff report and comments from staff and the public on proposed amendments to the City's zoning ordinance to permit on-site retail cannabis sales, and proposed findings in accordance with the California Environmental Quality Act("CEQA") concerning the proposed zoning amendments, and at the hearing all interested parties had the opportunity to be heard; and WHEREAS, materials submitted along with the staff report for the Planning Commission's consideration included a graphic showing parcels in Business Park and Industrial zones in the City that would satisfy the City's buffers zones from sensitive uses, such as school uses, and also parcels in Commercial zones that would satisfy the City's buffers; and WHEREAS, at the conclusion of the May 14, 2024, Planning Commission meeting, the Commission adopted a resolution recommending that the City Council adopt the text amendments contained in Exhibit A to the resolution to modify the IZO, Chapter 4, Section 4.030—Allowable Land Uses and Permit Requirements and Chapter 28 —Glossary, and find the zoning amendments to be exempt from CEQA; and WHEREAS, the Planning Commission did not recommend that the City Council expand the zones within which retail cannabis uses would be permitted to include Commercial zones; and Resolution No. 2024-075 N.C.S. Page 2 DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD WHEREAS, on June 17, 2024, the City Council held a duly noticed public hearing to receive and consider proposed amendments to provisions in the IZO, Ordinance 2300 N.C.S., to permit on-site retail sales of cannabis and cannabis products at a maximum of up to three locations in Business Park and Industrial zones, where similar retail and service commercial uses are already permitted, and an ordinance to adopt corresponding amendments to the City's cannabis regulations in the Petaluma Municipal Code to relocate the City's cannabis regulations to a new Chapter 6.10 entitled"Cannabis," and to permit on-site retail cannabis sales in up to three locations in zones specified in the IZO, subject to a valid, annual commercial cannabis business permit granted by the City, and to consider as well the accompanying staff report and comments from staff and the public; and WHEREAS, the City Council, in considering the Planning Commission's recommendations, and the graphic showing parcels in Business Park, Commercial and Industrial zones that would satisfy the City's buffers from sensitive uses, directed that Commercial zones be included among those zones where retail commercial cannabis activity would be permitted in the City, and directed other changes to the proposed ordinances for allowing on-site retail cannabis sales in the City, including: changing the buffer provisions in the IZO to prevent new sensitive uses from making a permitted cannabis retail sales business location ineligible for permit renewal; amending buffer requirements to be based on the distance between the parcel boundaries of a sensitive use and the boundaries of a permitted cannabis retail sales premises; harmonizing permitted hours of operation of retail cannabis businesses in the City with the hours of operation permitted under state law; taking into account the distribution of permitted cannabis retail sales locations in the City in decisions to award retail cannabis permits to qualified applicants, so as to provide for a convenient distribution of cannabis retail businesses in the City; and that staff return to the City Council with staff s recommendations regarding retail cannabis sales permit fees; and WHEREAS, Section 10.15.090 of the Petaluma Municipal Code, to be renumbered as Section 6.10.090 in accordance with Ordinance No. 2891N.C.S. if adopted by the Council,provides that the City Council shall, by duly adopted City Council resolution, adopt regulations or authorize the city manager to promulgate regulations, intended to implement the City's cannabis regulations in accordance with all applicable provisions of the city charter and other applicable law, and accordingly, Attachment A to this resolution provides updated administrative commercial cannabis permit regulations for City Council adoption to implement cannabis-related regulations in the City's Municipal Code and Implementing Zoning Ordinance; and CEQA FINDINGS WHEREAS, the proposed IZO amendments contained in Exhibit A to the resolution adopted by the Planning Commission, if adopted by the City Council, would permit on-site commercial cannabis retail sales businesses in Business Park and Industrial zones only, where similar retail and service commercial uses are already permitted, and limit the number of storefront cannabis retail uses that can operate within the city to a maximum of three different locations subject to the development standards and all other applicable requirements set forth in the base zoning districts; and WHEREAS, the Environmental Impact Report ("EIR") for the City's General Plan 2025 ("General Plan"), State Clearinghouse No. 2004082065, was certified in May, 2008, and evaluated possible environmental impacts associated with the implementation of the General Plan pursuant to CEQA and the Resolution No. 2024-075 N.C.S. Page 3 DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD CEQA Guidelines through 2025 to land use, transportation,parks and recreation, public services, public utilities and energy, hydrology, geology, seismicity and soils,biological resources, noise, air quality, visual resources, cultural resources, and hazardous material, and proposed feasible mitigation measures to reduce or eliminate potentially significant impacts or effects; and WHEREAS,pursuant to CEQA Guidelines Sections 15061(b)(3) (General Rule), CEQA applies only to projects which have the potential to result in a significant effect on the environment, and where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review, and there is no possibility that the proposed amendments to the City's cannabis regulations pursuant to this ordinance will result in a significant effect on the environment, because this ordinance merely establishes regulations governing storefront retail cannabis uses, and no cannabis businesses will be approved to operate as part of this action, and as a result, there is no possibility that the adoption of this ordinance may have a significant effect on the environment as future storefront retail cannabis businesses will be limited to a maximum of three for the entire city, and will be located on developed properties where similar retail and service commercial uses are already operating or permitted to operate, and accordingly, this ordinance is eligible for exemption pursuant to CEQA Guidelines Section 15061(b)(3); and WHEREAS,pursuant to 15183 (Projects Consistent with a Community Plan or Zoning) of the CEQA Guidelines,projects that are consistent with the development density established by existing zoning, community plan, or general plan policies for which an EIR was certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site, and the proposed amendments to the City's cannabis regulations pursuant to this ordinance will allow operation of storefront retail cannabis uses which are similar to retail and service commercial uses that are already permitted to operate within areas designated as Business Park, Commercial and Industrial in the City's General Plan, cannabis delivery is also permitted to operate within the Business Park and Industrial areas within the city, and because this ordinance will permit operation of a limited number of storefront cannabis retail establishments that are of a similar nature to retail and service commercial uses that are already permitted to operate, adoption and implementation of the this ordinance will not result in new or more severe impacts previously analyzed and disclosed in the General Plan EIR, like in the ruling in Lucas v. City of Pomona (2023) 92 Cal.App.5th 508; and WHEREAS,pursuant to Sections 15301, 15302, and 15303 of the CEQA Guidelines, this ordinance is categorically exempt from CEQA because the amendments to the City's cannabis regulations pursuant to this ordinance will allow commercial cannabis businesses with a City of Petaluma issued Commercial Cannabis Permit to: 1) re-tenant existing commercial and industrial facilities designed to support such uses; 2) replace, modify or otherwise reconstruct existing commercial and industrial facilities with a new structure of substantially the same size,purpose and capacity; and/or 3) construct new small structures including fences, gates, greenhouses, and small scale commercial and industrial facilities, and none of the exceptions to the use of categorical exemptions apply because (a) the locations in the City where commercial cannabis activity is permitted are not areas where it may impact an environmental resource of hazardous or critical concern; (b) and the amendments pursuant to this ordinance will not result in cumulative impacts; (c) and do not involve an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances; (d) and will not result in damage to scenic resources within a highway officially designated as a state scenic highway; (e)the locations in the City where commercial cannabis activity is permitted are not hazardous waste sites pursuant to Section 65962.5 of the Government Code, and(f)the amendments pursuant to this ordinance will not result in a substantial adverse change in the significance of a historical resource; and therefore, because Resolution No. 2024-075 N.C.S. Page 4 DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD none of the exceptions to the exemptions in CEQA Guidelines sections 15301, 15302 and 15303 apply, this ordinance qualifies for application of the Class 1, 2, and 3 categorical exemptions. NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Petaluma as follows: 1. Findings. A. The above recitals are hereby declared to be true and correct and are incorporated into this ordinance as findings of the City Council. B. California Environmental Quality Act Findings: This resolution is statutorily and categorically exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Sections 15061(b)(3), 15183, 15301, 15302, and 15303, and based on the CEQA findings contained in the above recitals. Therefore, this resolution is not subject to further environmental review. 2. Resolution No. 2017-182 N.C.S. Repealed. Resolution No. 2017-182 N.C.S. adopted December 18, 2017, and the Commercial Cannabis Permit Regulations and Commercial Cannabis Security Requirements adopted pursuant to that resolution, are hereby repealed in their entirety, effective upon the effective date of this resolution, to be replaced in their entirety by the regulations adopted pursuant to this resolution. 3. Updated Cannabis Administrative Regulations Adopted. Pursuant to Section 10.15.090 of the Petaluma Municipal Code, renumbered to Section 6.10.090 in accordance with Ordinance No. 2891 N.C.S. the City Council hereby adopts the Commercial Cannabis Permit Regulations, including the Commercial Cannabis Security Requirements, attached to and made a part of this Resolution as Exhibit A. 4. City Manager Promulgation of Regulations. In accordance with Section 10.15.090,renumbered to Section 6.10.090 in accordance with Ordinance No.2091 N.C.S.,the City Manager is hereby authorized to promulgate regulations that amend the regulations adopted pursuant to this resolution as deemed appropriate to further and consistent with the purposes of the City's adopted cannabis regulations. 5. Severability. If any section, subsection, sentence, clause, phrase or word of this resolution is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this resolution. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this resolution and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional,unlawful, or otherwise invalid. 6. Effective Date. This resolution shall become effective at the same time that Ordinance No. 2891 N.C.S. amending cannabis regulations in the Petaluma Municipal Code and Ordinance No. 2890 N.C.S. amending cannabis regulations in the Petaluma Implementing Zoning Ordinance become effective. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to Council of the City of Petaluma at a Regular meeting on the 17'day of June 2024, Docuftnedi4. __: by the following vote: 5EFWAE9�Worney Resolution No. 2024-075 N.C.S. Page 5 DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD AYES: McDonnell,Barnacle,Cader Thompson,Healy,Pocekay,Shribbs NOES: None ABSENT: Nan ABSTAIN: None DocuSigned by: DocuSigned by: ATTEST: C` L- "w hAww& City Clerk Mayor Resolution No. 2024-075 N.C.S. Page 6 DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD EXHIBIT A CANNABIS ADMINISTRATIVE REGULATIONS Resolution No. 2024-075 N.C.S. Page 7 DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD �zALU l City of Petaluma a09 Dated: �858 Commercial Cannabis Permit Regulations June 17, 2024 Commercial Cannabis Businesses These regulations apply to the establishment and operation of cannabis businesses within the City of Petaluma in accordance with and subject to Chapter 6.10 entitled "Cannabis" of the Petaluma Municipal Code. A. Purpose.To recognize the will of the voters in approving Proposition 64 while promoting the public health, safety, and welfare through regulating specified commercial cannabis activity in the City in accordance with Petaluma Municipal Code Section 6.10.010. B. Permit Eligibility. The following commercial cannabis activities are eligible for issuance of a City permit, so long as the activity is conducted in areas of the City where the use is permitted in accordance with the City's zoning regulations, as required by Section 6.10.040(A)(2) of the Petaluma Municipal Code: 1. Manufacturing. In accordance with Petaluma Municipal Code section 6.10.040(B), commercial cannabis permits may be issued to businesses that manufacture and sell topical or edible cannabis products using cannabis infusions, infusion processes, or cannabis concentrates only business to business (non-retail). Manufacture of cannabis products involving volatile solvents, and repackaging cannabis or cannabis products or re-labeling cannabis or cannabis product containers are not authorized commercial cannabis activities under Chapter 6.10 of the Petaluma Municipal Code and are not eligible for issuance of a City permit. 2. Testing. In accordance with Petaluma Municipal Code section 6.10.040(C), commercial cannabis permits may be issued to laboratories, facilities or entities that offer or perform testing of cannabis or cannabis products. To be eligible for issuance of a City permit, testing businesses must be: a) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state; and b) Licensed by the state Bureau of Cannabis Control. 3. Delivery-Only Dispensary/ Retailer. In accordance with Section 6.10.040(D) of the Petaluma Municipal Code, the following retail cannabis sales activity is eligible for issuance of a City permit: a) A total of up to two (2) delivery-only cannabis dispensary permits maybe issued to businesses in the City that sell cannabis and cannabis products using a delivery-only method in accordance with section 6.10.060 of the Petaluma Municipal Code 1 DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD b) The City delivery only dispensary/ retailer permits will be issued using a request for proposal process. In accordance with Petaluma Municipal Code Section 6.10.040(D), the following are not authorized commercial cannabis activities under Chapter 6.10 of the Petaluma Code and are not eligible for issuance of a City permit: c) Customers, primary caregivers or qualified patients at the business location at any time; and d) Signage at the business location or on the delivery vehicles indicating the presence of cannabis or cannabis products or that the seller sells cannabis or cannabis products. However, in accordance with Petaluma Municipal Code section 6.10.040(D), the prohibition against customers, primary caregivers and qualified patients at the business location and signage at the business location shall not apply to business locations where on-site retail sales of cannabis and cannabis products is also permitted in accordance with Petaluma Municipal Code Section 6.10.040(E). 4. On-site Retail Sale of Cannabis In accordance with Petaluma Municipal Code Section 6.10.040(E), the following cannabis sales activity is eligible for issuance of a City permit: a. A total of up to three (3) cannabis dispensary permits may be issued to businesses in the City that sell cannabis and cannabis products onsite at the business location to customers, primary care givers or qualified patients; b. The City on-site dispensary/ retailer permits will be issued using a request for proposal process. C. Commercial Cannabis Business Owner and Employee Requirements. 1. All commercial cannabis business owners and employees must be 21 years of age or older. 2. Commercial cannabis business owners and/or employees applying for and/or operating under a City permit are subject to background check. Commercial cannabis permit applications may be denied, and issued commercial cannabis permits may be revoked, if the business owner and/or the business owner's employees have been convicted of an offense that substantially relates to the qualifications, functions or duties of the business that is the subject of the permit application or an issued permit. Such offenses that may disqualify an applicant or result in revocation of an issued permit include, but are not limited to, a felony conviction involving fraud, deceit, or embezzlement, and a criminal conviction for the sale or provision of illegal controlled substances to a minor. DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD D. Location limitations. In accordance with Petaluma Municipal Code section 6.10.040, commercial cannabis businesses are only permitted to operate in areas of the City where commercial cannabis business uses are expressly listed as permitted uses in accordance with the City's zoning regulations. E. Permit Application Process 1. Application. Applications for a City cannabis business permit shall be submitted to the City on a form provided by the City. Applications that are not complete, including a completed City form, and any required supporting information, may be returned. Applicants should allow approximately 60 days for City permit application review. 2. Fee. The fee that applies to process applications for cannabis business permits shall be set by City Council resolution. No fee payments will be prorated or refunded in the event of a permit denial or revocation. Applications that are submitted without the required fee may be returned. 3. Applicable Regulations. Cannabis business permit applications are subject to the laws and regulations in effect at the time an application is submitted. 4. No Entitlement. The City has no duty or obligation to issue any cannabis business permits. Issuance of cannabis business permits is not ministerial and is subject to exercise of the City's discretion. Neither Chapter 6.10 of the Petaluma Municipal Code nor these regulations create in any person or entity any entitlement or vested right to receive a cannabis business permit. 5. City Review. Permit applications will be subject to the City's discretionary review. The City will determine in its sole discretion whether to issue a permit taking into account the factors listed under the Permit Denial and Revocation section, below, and any other factors deemed relevant. The City may issue cannabis business permits subject to conditions the City deems necessary or appropriate to protect the public health, safety and welfare. F. Permit Term. Unless revoked or suspended, cannabis business permits and permit renewals shall be valid through the end of the calendar year in which they are issued and unless timely renewed will expire without further action of the City January 1 of the immediately following year. G. Permit Renewal Process. 1. Application. Cannabis business permit renewal applications shall be submitted to the City on a form provided by the City. Renewal applications that are not complete, including a completed City form, and any required supporting information, may be returned. DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD 2. Fee. The fee that applies to process applications for renewing cannabis business permits shall be set by City Council resolution. Permit renewal applications that are submitted without the required fee may be returned. 3. Renewal Application Deadline. Renewal applications and any applicable fees and required supporting information must be submitted at least sixty (60) days before the expiration of the permit. Permits of eligible renewal applicants that do not submit timely, complete renewal applications may expire prior to issuance of a renewal permit, if a renewal permit is issued, requiring cessation of commercial cannabis business operations until the renewal permit takes effect. 4. Failure to Apply for Renewal. Failure to submit a completed cannabis business permit renewal application prior to the expiration date of a permit will result in the automatic expiration of the permit effective January 1 of the year immediately following the year in which the permit was issued. S. Applicable Regulations. Permit renewal is subject to the laws and regulations in effect at the time a renewal application is submitted. Such laws and regulations may be substantially different from the laws and regulations in effect when a permit was issued. Renewal applications may require submittal of additional information, and compliance with updated fee and other requirements as required by the laws and regulations then in effect. 6. No Entitlement. The City has no obligation or duty to renew any cannabis business permits. Issuance cannabis business permits is not ministerial and is subject to exercise of the City's discretion. Neither Chapter 6.10 of the Petaluma Municipal Code nor these regulations create in any person or entity any entitlement or vested right to receive a cannabis business permit renewal. 7. City Review. Permit renewal requests will be subject to the City's discretionary review. The City will determine in the City's sole discretion whether to issue a renewal permit taking into account the factors listed under the Permit Denial and Revocation section, below, and any other factors the City deems relevant. The City may renew cannabis business permits subject to conditions the City deems necessary or appropriate to protect the public health, safety and welfare. H. Permit denial and revocation. Applications to issue or renew a cannabis business permit may be denied and existing permits may be revoked based on violations by the permit applicant or permit holder of any provision of these regulations or of the Petaluma Municipal Code, including, but not limited to, violations of Petaluma Municipal Code Chapters 1.10 and 6.10. In addition, applications to issue or renew a cannabis business permit may be denied and issued permits may be revoked based on a determination that: 1. Continuation of a cannabis business's operations presents a threat to the health, safety or welfare of the public. DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD 2. Information contained in a cannabis business's permit application is found to be incorrect or misleading. 3. A cannabis business has failed to operate in accordance with all local and state laws or any requirements of these regulations. 4. A cannabis business owner and/or the business owner's employees have failed to comply with the commercial cannabis security requirements which are attached to and made a part of these regulations as Exhibit A. 5. A cannabis business's state license for commercial cannabis operations has been revoked, terminated, or not renewed. 6. A commercial cannabis business has not been in regular and continuous operation for three (3) consecutive months. 7. State law permitting the use for which a cannabis business's permit was issued is amended or repealed resulting in such use becoming unlawful under state law. 8. The City receives credible information that the federal government will commence enforcement measures against cannabis businesses and/or local governments that permit them. 9. The circumstances under which a cannabis business permit was issued have changed such that the public health, safety, and welfare require the suspension, revocation, or modification of the permit. 10. A cannabis business is delinquent in timely remitting applicable City taxes or fees. I. Permit Transfer. 1. Cannabis business permits are not transferable to a location different from the location for which a permit has been issued, or to another cannabis business owner. 2. Cannabis business owners wishing to relocate to a new location in the City and prospective cannabis business owners wishing to acquire an existing, permitted cannabis business must submit new permit applications for such transfer or acquisition. New cannabis business locations and owner(s) must meet all requirements for new cannabis business permit applications. J. Revocation Proceedings and Appeals. Cannabis business permit revocation proceedings, appeals of cannabis business permit revocations, appeals of cannabis business permit application denials, and judicial review of permit revocation and denial appeals, will be subject to and conducted in accordance with the requirements for administrative enforcement of violations of the Petaluma Municipal Code pursuant to Chapter 1.14 of the Petaluma Municipal Code. DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD K. Cannabis Business Operating Requirements. 1. State License. In addition to complying with these regulations, all activities under City cannabis business permits that are subject to State license requirements must be conducted subject to and in accordance with all applicable state licenses. Cannabis business permit holders must also hold valid, unrevoked state licenses for all activities of the cannabis business permit holder that are subject to state license. 2. City Business License. All cannabis business permits holders must also hold a valid, unrevoked City of Petaluma business license. 3. Hours of Operation. Cannabis business permit holders may operate their cannabis business only between the hours of 8:00 a.m. and 8:00 p.m. 4. Cannabis Signage. Except for cannabis on-site retail sales locations permitted in accordance with Petaluma Municipal Code Section 6.10.040(E), cannabis businesses may not display exterior signage or symbols that advertise the availability of cannabis or cannabis products, nor shall any such signage or symbols be displayed on the interior of the facility in such a way as to be visible from the exterior. S. No Onsite Consumption. No cannabis or cannabis products may be smoked or ingested on the premises of any cannabis business, including by owners, employees, vendors or customers.The term "premises" includes the entire cannabis business premises, including buildings, as well as any accessory structures, parking areas, or other immediate surroundings. 6. Cannabis Deliveries. Cannabis deliveries may only be made by an owner or employee of the cannabis delivery business, and such owners and employee must carry with them at all times while conducting deliveries, either on their person or in their delivery vehicle, a physical copy of the City commercial cannabis business permit under which they are operating,the City business license under which they are operating,and all state cannabis licenses under which they are operating. 7. Employees. All employees of commercial cannabis businesses must be at least 21 years of age and are subject to background check by local law enforcement. The City may implement a registration system whereby all commercial cannabis business owners and employees must register with the City to permit background checks as a condition of issuance or renewal of commercial cannabis business permits. 8. Onsite Security. Commercial cannabis businesses must comply with the Commercial Cannabis Security Requirements attached as Exhibit A to these regulations. Commercial cannabis business permits of cannabis businesses that fail to comply with the Commercial Cannabis Security Requirements are subject to non-renewal and revocation. DocuSign Envelope ID:C679930E-7BC9-405F-A498-D24EFE5864DD L. Enforcement. 1. Public Nuisance. In accordance with Petaluma Municipal Code Section 6.10.100, any violation of these regulations or of Chapter 6.10 of the Petaluma Municipal Code is a public nuisance. 2. Remedies. The City may seek remedies for any violations of these regulations and/or Chapter 6.10 of the Petaluma Municipal Code pursuant to any applicable authorities, including, but not limited to those contained in Chapter 26 of the City's Implementing Zoning Ordinance and those contained in Title 1 of the Petaluma Municipal code. 3. Right to Access and Audit. As a condition of issuance of a commercial cannabis business permit and continued operations under a commercial cannabis business permit, commercial cannabis permit holders must: a) Provide the City, its employees and/or agents full access to enter permitted premises to inspect business operations and cannabis and cannabis products at the business premises to ensure compliance with these regulations and Chapter 6.10 of the Petaluma Municipal Code. b) Permit the City, its employees and/or agents to review and copy any materials, books, or records in the permit holder's possession to ensure compliance with these regulations and Chapter 6.10 of the Petaluma Municipal Code. Failure or refusal to cooperate with the City inspections and audits in accordance with this section is, in the absence of any other violations of Chapter 6.10 of the Petaluma Municipal Code or of these regulations, sufficient grounds for revoking cannabis business permits.